GameStop Corp. (NYSE: GME) is a retailer primarily focused on video games, consumer electronics, and collectibles. The company recently reported its financial results for the first quarter of fiscal 2025, which ended on May 3, 2025.

GameStop is in a state of recovery, showing significant improvement in multiple financial metrics. Net sales declined to $732.4 million from $881.8 million year-over-year. However, selling, general and administrative expenses decreased to $228.1 million from $295.1 million in the prior year’s first quarter. The operating loss narrowed considerably to $10.8 million from $50.6 million a year prior.

Notably, the first quarter’s operating loss included $35.5 million in impairment charges related to international restructuring efforts. Excluding these charges, the adjusted operating income for the quarter was $27.5 million, a substantial recovery from an adjusted operating loss of $55.0 million in the same period last year.

Net income improved dramatically to $44.8 million, compared to a net loss of $32.3 million in the first quarter of 2024. Adjusted net income, excluding impairment charges and other items, was reported at $83.1 million versus an adjusted net loss of $36.7 million during the prior year’s quarter.

Cash, cash equivalents, and marketable securities totaled $6.4 billion at the end of the quarter, up from $1.0 billion at the end of the first quarter of the previous year. This includes a robust increase in cash flow, with net cash flows from operating activities reported at $192.5 million, compared to an outflow of $109.8 million in the same period last year.

The company completed its divestiture of its Canadian operations on May 4, 2025, and purchased 4,710 Bitcoin during the period between May 3, 2025, and June 10, 2025.

In summary, GameStop has demonstrated operational improvement, achieving reduced expenses and strong adjusted profit figures while significantly increasing its cash reserves. The adjustments reflect ongoing efforts to reshape its business model amid a changing retail landscape.